Staging the 2022 Olympic Winter Games without a deficit is a realistic scenario. The history of the Olympic Winter Games shows that operational budgets are generally very manageable. Since 1994, four out of five Winter Games have ended with a balanced or positive result. Only Lillehammer 1994 recorded a deficit in the end. This is shown by an analysis by Graubünden 2022 based on the financial statements of past Olympic Winter Games.
Cost overruns at previous editions were caused almost exclusively by additional investments, mostly in transport infrastructure. For Switzerland, there is hardly any risk potential here for two reasons: first, Swiss infrastructure already meets a very high standard, and second, budget control for investments remains exclusively with the parliaments of the federal government and the canton of Graubünden.
“The staging of the Olympic Winter Games can be planned and budgeted well,” Gian Gilli, Director of the Graubünden 2022 Association, told the media. “By the time the IOC awards the Games in 2015, we will know very precisely what Switzerland would be facing both organisationally and financially. If by then it becomes clear that the figures calculated today cannot be met and that the federal contribution of one billion Swiss francs would not be sufficient, the bid will be withdrawn.”
Commenting on the current discussion about who would cover any potential operating deficit, Gilli said: “From today’s perspective, the risk of a deficit is low. The answer to the question of who would assume any possible deficit will be found through the political process. The fact that this answer is not yet available today is not surprising, nor is it a problem: it only needs to be in place when the IOC awards the Games in summer 2015. By then at the latest, we will either have that answer or withdraw the bid.”
Revised Operating Budget
The revised operating budget for Graubünden 2022 presented on Friday provides for a balanced result, assuming a federal contribution of one billion Swiss francs towards operating costs. Expenditure of 2.464 billion Swiss francs is set against revenues of 1.464 billion, plus the federal contribution. Compared with the budget published in summer 2012, total expenditure has been reduced by 376 million Swiss francs. Two thirds of these savings come from a redesign of the Olympic Village in Davos and from smaller construction projects, such as the temporary large ski jump in St. Moritz.
The revision of the operating budget had already been announced in September 2012. In the event of a formal bid, the Games project and the operating budget would continue to be developed on an ongoing basis. By the time the IOC awards the Games in summer 2015, all details will be known. At that point, the bid committee, together with the federal government, the canton of Graubünden, the host municipalities and Swiss Olympic, will decide on the basis of clearly defined criteria whether to proceed with the bid or to withdraw.
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